In Real Estate circles the we have a phrase that we emphasize to our sellers. It is actually very simple. It is 3 words and they repeat! DISCLOSE, DISCLOSE, DISCLOSE.
In reality we live in a litigious world and the best way to protect ourselves is to disclose what defects are aware of when we list our homes for sale.
Recently, I had the unfortunate experience of listing a home of a long term client where a family member recently ended his life by hanging. While, it was very very sad, I had to know if this has to be disclosed to buyers.
The laws vary by state but on NC there is a published document entitled 14 Facts you Do Not Need to Disclose wen selling! You can read the article here.
If you want to learn more about disclosure, please read the article on Realtor.com entitled: Learn These Basic Rules of Seller Disclosure So You Don't Get Sued